Sony has cut the price of the PlayStation Portable by $30 to $170 in the US, and has also added free wi-fi hotspot coverage in a deal with T-Mobile there.
The T-Mobile deal is valid for six months at 7,000 hotspots around the US.
Nintendo successfully offered free wi-fi for a promotional period when it introduced the DS back in 2005.
Sony also announced a new firmware upgrade for the T-Mobile promotion allowing PSP users to play games online, surf the Web, and download podcasts directly from these hotspots.
Sony says that last year it shipped 25 million PSPs worldwide and software shipments grew to 90 million units for 2006.
Sony says that PSP owners can now play classic PlayStation 1 and 2 titles downloaded from the new PlayStation Store via the Ps3